The former CEO of Sovereign Bank will take over the helm at the $1.9 billion Needham Bank in the New Year, succeeding its current CEO Mark Whalen.

In a statement, Chairman of the Board of Directors Jack McGeorge said that Joseph P. Campanelli will join Needham Bank on Jan. 3.

“When Mark Whalen announced his retirement, we undertook an exhaustive national executive search for his replacement and met many highly qualified individuals from all over the country,” McGeorge said in the announcement. “Joe distinguished himself based upon his impressive banking career, community involvement, in-market knowledge, and personality match with our culture. As we approach our 125th anniversary, this is an even more significant leadership change. We welcome him to the Needham Bank family and look forward to him joining our team in January.”

Campanelli, of Wellesley, began his career at Hartford National Bank and progressed through the ranks of its successor banks until he left Fleet Bank in 1997 to join Sovereign Bank, where he eventually became CEO and director. He left Sovereign Bank in 2008 and later served as chairman, CEO and director of Flagstar Bank from 2009 to 2012.

Campanelli now serves as chairman and trustee of Tufts Medical Center and as trustee of the Boys and Girls Club of Boston. He is the former chairman and a current trustee of the Massachusetts Business Roundtable, Advisory Board Member of First Help Financial, former Trustee of Babson College and of Suffield Academy and former Executive Committee Member of the Greater Boston Chamber of Commerce.

Whalen will work with Campanelli on the transition and will continue to serve on the bank’s board of directors.

“As I reflect upon my 35 year banking career, I am most proud to have spent that time as a community banker,” Whalen said in the announcement. “Serving the community is a noble undertaking and one in which I have had great pride each and every day. I’m looking forward to getting to know Joe even better and working with him as we transition our roles and responsibilities.”